Joe Segel has founded over 20 companies, notably QVC and, more recently, HairRx, a customized haircare system launched in 2017. Rather than sit back and chill, Segel has taken up the difficult task of competing in the crowded CBD beauty space.
“I’ve been a serial entrepreneur my entire life,” he says. “When I see something that can be done a better way, I’m driven to do it.”
In collaboration with Jodi Dery, founder of Cloud 10 Blow Dry Bar & Beauty Salon, which Segel has invested in, he’s introducing Cloud 10 CBD-Infused Hair Care. The brand is kicking off with five items priced from $27 to $31: shampoo, conditioner, leave-in scalp toner, all-in-one hair lotion and glossing mist. Like HairRx, Cloud 10 CBD-Infused Hair Care is part of a family of brands owned by ProfilePro LLC, a company established five years ago to bring haircare products to the direct-to-consumer, retail, spa and salon channels.
The beauty industry is awash in CBD products, primarily concentrated in the skincare sector, but Segel and Dery assert CBD has more benefits for hair and scalp than the face, and the haircare segment isn’t as jammed with CBD as skincare. Segel says, “While the skincare market is saturated with CBD products, there aren’t many haircare brands utilizing this ingredient in the most beneficial way.”
It doesn’t hurt that haircare is on a hot streak. According to The NPD Group’s estimates for the second quarter, it’s the fastest-growing prestige beauty category, with sales jumping 21% from last year to $217 million. Segel, who has a knack for hitting upon consumer goods white spaces, thinks he’s identified a glaring one within haircare. He says, “Since there was a lack of professional, quality organic, broad-spectrum CBD-infused haircare lines, we decided to create Cloud 10 to fill a gap in the market.”
While Segel wouldn’t comment on revenue projections, sources familiar with the haircare industry forecast the line could easily surpass $2 million in sales during its first 18 months in business.
“I’ve been a serial entrepreneur my entire life. When I see something that can be done a better way, I’m driven to do it.”
Dery holds Cloud 10 is carving out a niche in the professional segment with not only CBD, but a cocktail of other ingredients. In its products, CBD is combined with a plant-derived protein from hemp and rice dubbed phytokeratin plus, and orange peel, green tea, yucca, ginseng root and passion root extracts. The formulas are designed to boost moisture, elasticity and shine, and reduce breakage and frizz.
Cloud 10 addresses the rising demand for vegan beauty products. “Consumers are becoming more conscious about purchasing responsibly-sourced products that don’t harm the environment yet are also efficacious. Vegan ingredients are gentle on the scalp and hair as well as the planet,” says Dery of the brand going vegan. It’s cruelty-free as well and certified by Leaping Bunny.
Segel and Dery drew upon their track records in the hair segment with Cloud 10 salon and HairRx, now a range with 250 stockkeeping units sold on Amazon, to pinpoint consumer scent and lather preferences. Cloud 10 CBD-Infused Hair Care’s products are scented with a hint of jasmine. Segel says, “While many brands take years to research and strategize, we already had essential data from HairRx at our fingertips.” Beyond examining the data, Dery put Cloud 10’s CBD haircare formulas to the test in her salon and tweaked them based on client feedback.
In addition, Dery pulls from her real-world experience as a licensed massage therapist. “I have always been interested in natural oils and how they nourish the skin and body,” she says. “As the popularity of CBD grew, people started using it for its calming and relaxing properties. However, from my unique experience, I knew CBD could benefit the skin on your body and scalp as well as the health of your hair.”
“While the skincare market is saturated with CBD products, there aren’t many haircare brands utilizing this ingredient in the most beneficial way.”
Cloud 10 uses broad-spectrum hemp extract because Dery feels it’s superior to CBD isolate. “It uses multiple compounds in the hemp plant, with the exception of THC,” she explains. “These compounds work in synergy to produce more benefits then a CBD isolate could on its own.” As an example, Dery cites omega fatty acids in broad-spectrum hemp extract that support moisture retention and protect against environmental stressors to help hair look healthy and soft.
Consumer curiosity about CBD is undeniable. In just the last year, conversations about CBD grew 246% in beauty and 187% in personal care, according to analytics firm Social Standards. But there’s skepticism, too. Dery acknowledges, “There is a lot of misinformation.” To combat the skepticism, Cloud 10 lays out details about its suppliers, and CBD and phytokeratin plus, among various ingredients, on its website.
“All of our formulas have undergone rigorous third-party testing, and we post all independent lab reports to our site, which show the amount of cannabinoids in each product and that our products do not contain THC or harmful pesticides or microbials,” says Dery. Cannabinoid testing facility Encore Labs evaluates the CBD levels in Cloud 10 CBD-Infused Hair Care’s products, Originitalia Labs produces its formulas, and Folium Biosciences provides its hemp extract.
Cloud 10 CBD-Infused Hair Care will be sold at the Cloud 10 salon and nationwide online, an avenue the co-founders call “an excellent way to address the myriad questions consumers have about CBD-infused haircare.” Segel says, “We look forward to expanding to other salon and spa locations as well as partnering with retailers that are information-focused and share the same consumer service orientation.”
Leave a Reply
You must be logged in to post a comment.